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4. Patey Pontoons issued 6% bonds on January 1, 2011 with a face amount of $600,000. The market yield for bonds of similar risks and

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4. Patey Pontoons issued 6% bonds on January 1, 2011 with a face amount of $600,000. The market yield for bonds of similar risks and maturity is 7%. The bonds mature in 4 years and the interest is paid annually on December 31. (a) Determine the price of the bonds on January 1, 2011. (b) Prepare the journal entry to record the issuance of the bonds on January 1, 2011. (c) Prepare the journal entries to record the payment of interest for each year, starting from December 31, 2011 to December 31, 2014

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